2005 (7) TMI 426

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....996 obtained 11 volumes comprising of certain work standards and part drawings which were in the nature of operating manuals to obtain the right quality products. A bill of entry was filed declaring the value of the 11 volumes at U.S.$ 300 and the consignment was custom cleared. Subsequently, proceeding were initiated and the Commissioner passed an order holding that 11 volumes of technical information are liable to customs duty under Customs Tariff Heading 1491. A differential duty demand of over Rs. 1 crore was confirmed against the appellants. When matter came before this Tribunal in appeal, it took the view that the rate of duty applied was incorrect and that the value of the 11 volume was also required to be re-worked. Accordingly, the....

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....fructified, it has been the contention of the appellant that the total payment of US $ 1 million is to be apportioned among various obligations including licence for industrial property rights, technical information assistance and imparting of technical know-how. Reliance has been placed on the decision in the case of Prerna Textile - 2000 (117) E.L.T. 241 and the judgment of the Supreme Court in the case of Associated Cement Company - 2001 (128) E.L.T. 21 in support of the contention that such an apportionment is merited. 5. With regard to penalty, the submission of the learned Counsel is that the Appellant had deposited the amount of Rs. 10 lakhs on 17-1-2001 well before the issue of show cause notice dated 21-7-2001. It is being ....

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....gh transfer of those volumes. Much more in the nature of visits of experts, and detailed exchanges of data and information and experience were necessary. Therefore, the appellant's contention that these volumes had no commercial value merits acceptance. The appellant's submission that total cost of U.S. $ 1 million should be allocated among the various relevant heads also merits acceptance. The role of each of these elements is clearly reflected in the agreement. However, since the cost of each of these elements is not separately stipulated in the agreement, a broad allocation of costs among the various elements would be appropriate. In the case relied upon by the appellant, the allocation of 1/3 cost towards drawings has been approved by t....